PUBLIC  EXPENDITURES. 


SPEECH 


OF 


HON.  R.  H.  DUELL,  OF  NEW  YORK. 


Delivered  in  the  House  of  Representatives,  June  14,  1860. 


-o- 


Mr.  Chairman:  I  propose  at  this  time 
to  call  the  attention  of  the  House  to  some 
facts  connected  with  our  public  expendi¬ 
tures. 

At  the  commencement  of  the  present 
session  of  Congress,  the  Secretary  of  the 
Treasury  submitted  his  annual  report,  from 
which  it  appears  that  the  total  expendi¬ 
tures  of  this  Government,  inclusive  of  the 
public  debt,  during  the  fiscal  year  ending 
June  30,  1859,  was  $83,751,5]  1.57 — a 
Jargter  sum  than  has  ever  been  expended 
in  any  one  year  since  the  adoption  of  the 
Constitution.  This  amount  was  applied 
to  the  various  branches  of  the  public  ser¬ 
vice  as  follows : 

Civil,  foreign  intercourse,  and  miscella¬ 
neous  -  $23,635,820.94 

Indians  and  pensions  -  4,753,972.60 

Expenses  of  War  Depart¬ 
ment  -  23,243,822.38 

Expenses  of  Navy  Depart¬ 
ment  -  -  -  14,712,610.21 

Redemption  of  Treasury 

notes  -  -  -  17,405,285.44 


83,751,511.57 


In  order  to  ascertain  whether  there  has 
been  a  prodigal  expenditure  of  the  peo¬ 
ple’s  money,  we  should,  in  the  first  place, 
compare  this  with  former  periods.  The 
expenses  of  our  Government,  down  to  the 
end  of  Mr.  Jefferson’s  administration,  ap¬ 
pear  to  have  been  frugal  and  exemplary. 
The  cost  of  Washington’s  administration, 
for  the  whole  period  of  eight  years,  was 
only  ....  $15,892,188 
John  Adams’s/otw  years  -  21,450,351 

Jefferson’s  eight  years  -  41,300,788 

As  the  war  with  Great  Britain  occurred 
during  Mr.  Madison’s  term  of  office,  the 


expenses  were  increased,  during  his  eight 
years,  to  -  -  -  -  $144,684,939 

Monroe’s  eight  years  -  104,463,400 
The  average  annual  expenditure,  under 
John  Quincy  Adams,  was  $12,328,303 
Do.  under  Jackson’s  first 

term  -  14,062,469 

Do.  Jackson’s  second  term  -  21,782,607 

Do.  Van  Buren  -  -  28,047,172 

Do.  Tyler  -  20,304,156 

Do.  Polk  -  36,736,100 

Do.  Fillmore  -  48,661,900 

Do.  Pierce  ...  67,235,324 

Such  was  the  average  of  expenditures 
under  previous  administrations,  whilst 
under  Mr.  Buchanan  they  increased,  in 
1858,  to  $82,000,000,  and  now,  in  1859,  to 
$83,000,000  and  upwards;  and  this,  too, 
in  a  time  of  peace,  and  with  a  falling  rev¬ 
enue.  Well  may  the  people  look  with 
astonishment  and  alarm  on  such  a  condi¬ 
tion  of  affairs!  Compare  the  administra¬ 

tion  of  Mr.  Buchanan  with  that  of  General 
Jackson,  who,  with  revenues  at  no  time 
exceeding  in  the  average  $26,000,000,  yet 
paid  all  the  legitimate  expenditures  of 
Government,  besides  extinguishing  more 
than  fifty  million  dollars  of  the  public 
debt,  whilst  Mr.  Buchanan,  with  more 
than  fifty  millions  of  revenue  per  annum, 
yet  increases  the  public  debt  some  twenty- 
five  millions  annually ! 

From  the  foundation  of  the  Government 
down  to  this  day,  the  statesmen  of  our 
country  have  urged  upon  us  the  necessity 
of  rigid  economy  in  our  public  expendi¬ 
tures.  Washington,  Jefferson,  Madison, 
and  Jackson,  insisted  upon  an  honest  ad¬ 
ministration  of  the  Federal  Government, 
that  labor  might  be  lightly  burdened.  Mr. 
Buchanan  in  1852,  before  he  became 
President,  declared  that  fifty  millions  per 


2 


annum  was  an  “  enormous  sum,”  and  in¬ 
voked  the  strong  arm  of  the  Democracy 
to  interpose  and  arrest  the  increasing  ex¬ 
pense  of  Government,  for  fear  it  might,  in 
a  few  years,  reach  one  hundred  million. 

It  will  be  seen,  Mr.  Chairman,  that  du¬ 
ring  the  administration  of  General  Wash¬ 
ington,  the  costs  of  the  General  Govern¬ 
ment  were  only  fifty  cents  to  each  inhab¬ 
itant  per  annum.  The  population  of  the 
United  States  was  then  about  four  mil¬ 
lions,  and  the  expenses  of  the  Govern¬ 
ment  about  two  millions  annually.  The 
population  of  the  United  States  is  now 
about  twenty-eight  millions,  and  the  costs 
of  the  Government  is  about  three  dollars 
to  each  inhabitant.  During  the  adminis¬ 
tration  of  General  Jackson  even,  the  costs 
of  the  Government  amounted  annually  to 
but  one  dollar  to  each  inhabitant.  Bring 
this  Government  back  to  the  economy 
of  Jackson’s  administration,  and  fifty  mil¬ 
lions  would  be  saved  to  the  people  of 
the  United  States  annually. 

Sir,  it  can  be  shown  that  millions  of 
dollars  of  the  people's  money  is  not  used 
for  Government  purposes  at  all,  but  for 
party  purposes.  It  goes  to  political  friends 
as  a  reward  for  partisan  services  performed 
for  the  Administration.  I  cannot,  in  the 
brief  hour  allotted  me,  point  out  all  the 
leakages  in  our  national  Treasury,  but  I 
propose  to  call  the  attention  of  the  House 
to  a  few  of  them. 

A  very  dangerous  practice  has  existed, 
of  voting  large  contingent  funds  for  the  dif¬ 
ferent  departments  of  Government,  which 
presented  temptations  and  opened  a  flood¬ 
gate  of  corruption  to  the  higher  and  lower 
public  functionaries.  Many  hundred  thou¬ 
sand  dollars  have  in  this  way  been  put  at 
the  discretion  of  the  past  and  existing  Ad¬ 
ministrations,  no  small  portion  of  which 
was  squandered  for  most  unsuitable  parti¬ 
san  or  private  ends.  The  practice  of  hav¬ 
ing  large  outstanding  appropriations  lying 
over  from  one  year  to  another,  which  often 
amounted  to  many  millions,  has  often 
been  abused  by  applying  such  appropria¬ 
tions  to  objects  not  designated  by  law,  at 
the  discretion  of  the  Administration.  In 
this  way  there  was  never  any  want  of 
funds,  when  a  partisan  object  required  it, 
or  a  private  whim  was  to  be  gratified,  or 
favorites  wanted  patronage.  Secret  and 
partisan  emissaries  were  by  this  means 
sent  out,  under  the  guise  of  Government 


agents,  for  this,  that,  or  the  other  object, 
the  chief  errand  being  confidential,  and 
the  Administration  newspapers  of  the 
country  have  likewise  experienced  the 
benefits  of  contingent  and  disposable 
funds  in  the  hands  of  the  Executive  and 
his  agents. 

The  present  condition  of  the  Post  Office 
Department  and  its  revenues  is  a  matter 
deserving  the  gravest  consideration  of  the 
people.  From  a  report  recently  made  by 
the  Postmaster  General  to  the  Senate,  I 
compile  the  following  remarkable  table  of 


receipts  and 
since  1850  : 

losses  of 

the  postal  service 

Fiscal  year  end¬ 

Total 

Excess  of 

Excess  of  A 

ing  June  30, 

Receipts 

Revenue 

Expen.  £ 

1850  -  $ 

15,495,149 

$260,967 

-  1 

1851  - 

6,404,373 

112,624 

— 

1852  - 

5,016,039 

$2,098,671  1 

1853  - 

5,084,561 

— 

2,582,759  1 

1854  - 

6,029,734 

— 

2,568,382  ■ 

1855  - 

6,384,795 

— 

3,572,822  W 

1856  - 

6,6 54,424 

— 

3,814,960 
4,557,811^'! 
5,389,561  ' 

1857  - 

7,101,712 

— 

1858  - 

7,224,735 

— 

1859  - 

7,679,083 

— 

7,785,609 

It  appears 

that,  in  1850  and  1851,  there 

was  an  excess  of  revenue  over  the  ex¬ 
penses.  The  course  of  losses  since  1851 
has  been  most  extraordinary — beginning 
at  over  two  millions  in  the  first  year,  and 
rising  to  nearly  eight  millions  in  1859. 
The  loss  in  1859  is  greater  than  the  total, 
revenue,  the  entire  revenue  being  a  mil¬ 
lion  of  dollars  more  than  in  1851,  when 
the  service  paid  a  profit  to  the  Government. 
The  full  sum  of  loss  since  1852,  during 
all  of  which  time  the  Democratic  party 
has  been  in  power,  is  no  less  than  thirty- 
two  millions  two  hundred  and  seventy  thou¬ 
sand  Jive  hundred  and  seventy  jive  dollars , 
or  an  average  of  more  than  four  millions 
of  dollars  a  year.  Now,  the  annual  loss 
has  got  up  nearly  to  eight  millions ,  and,  at 
the  same  rate  of  progress,  it  will  be  thirty 
millions  of  dollars  in  the  year  1869. 

One  secret  of  the  present  condition  of 
affairs  will  appear  in  the  following  table, 
showing  the  increase  of  cost  as  compared 
with  1850  in  a  few  of  the  older  States — 
an  increase  which  demonstrates  that  it  is 
now  a  grand  scheme  of  local  patronage. 
The  increase  has  been  greatest  where  it 
should  have  been  least,  and  it  is  perfectly 
evident  that  a  radical  reform  is  needed: 

Cost  in  1650.  Cost  in  1859. 
New  York  -  -  $680,623  $1,107,887 

Pennsylvania  -  -  332,376  671,532 

Maryland  -  -  182,381  299,766 


3 


Virginia 

-  259,030 

510,801 

North  Carolina  - 

-  184,954 

270,762 

South  Carolina  - 

-  144,060 

319,068 

Georgia  - 

-  204,527 

358,180 

Alabama  - 

-  197,468 

393,628 

Mississippi 

-  110,184 

370,003 

Louisiana 

88,781 

777,517 

Tennessee 

-  107,237 

334,820 

Kentucky 

-  126,156 

365,675 

Ohio 

-  311,974 

806,414 

2,930,431 

6,586,053 

Thus  the  service  of  thirteen  States,  all 
old,  and  undergoing  few  changes  since 
1850,  comes  to  cost  two  and  a  half  times 
as  much  to  cany  the  mails  now  as  then. 
This  is  about  the  rate  of  increase  for  all  of 
the  old  States,  while,  in  the  new  ones,  of 
course  the  increase  is  ten  to  a  hundred 
fold. 

The  management  of  the  Post  Office  is  a 
disgrace  to  the  people  of  the  United 
States.  In  many  places,  the  inhabitants, 
who  pay  large  and  ample  sums  for  postage, 
are  cut  off  from  mail  facilities,  and  are 
compelled  to  either  carry  their  mails  them¬ 
selves,  or  do  without  them.  The  whole 
cost  of  Department  and  mail  service,  in 
1850,  was  $5,220,214;  and  in  1859, 
$15,404,276 — just  three  times  as  much. 
Excessive  expenditure  is  everywhere  ap¬ 
parent.  As  an  illustration,  compare  these 
two  items  for  1850  and  1859: 

Route  agents — 1850,  $58,266 ;  1859, 
$377,225. 

Printing  blanks — 1850,  $30,638;  1859, 

$117,171. 

Now,  sir,  in  1790,  when  the  Post  Office 
Department  went  into  operation,  it  was  a 
self-supporting  establishment.  From  that 
time  down  to  1850,  a  period  of  sixty 
years,  the  Department  had  more  than  sus¬ 
tained  itself ;  but  after  1851  the  expenses 
began  to  increase,  so  that  in  1859  there 
was  a  deficit,  as  I  before  stated,  of  nearly 
eight  millions  of  dollars.  What  explana¬ 
tion  can  be  furnished,  consistently  with 
honesty  and  fair  dealing?  None,  sir, 
none ! 

Let  us  look  at  some  of  the  items  of 
this  expenditure.  We  are  told  by  the 
Postmaster  General,  in  his  report,  that  we 
have  six  Pacific  mail  routes;  and  they  are 
very  unproductive,  and  all  but  one  unne¬ 
cessary,  in  my  judgment.  On  one  of 
these  routes,  only  three  letters  and  twen¬ 
ty-six  newspapers  were  carried  in  nine 
months;  and  yet  it  cost  the  Government 
seventy-nine  thousand  dollars  to  carry 


these  three  letters  and  twenty-six  news¬ 
papers  !  Mr.  Pearce,  a  Democratic  Sen¬ 
ator  from  Maryland,  thus  summed  up  the 
expense  of  running  these  six  routes,  a  few 
days  since,  in  the  Senate: 

“  The  gross  annual  disbursements  for  thp se  six 
routes  are  thus  shown  to  have  been  $2,184,000, 
while  the  receipts  were  but  $339,000 ;  the  greater 
part  of  which  came  from  the  ocean  mail  from 
New  York,  by  w*ay  of  Panama,  to  San  Francisco. 
The  annual  expenditures  for  local  mail  service, 
in  California,  Utah,  Washington,  and  Oregon, 
are  about  five  hundred  and  eight  thousand  dol 
lars.  Add  that  to  the  $2,184,000,  and  you  hav 
an  aggregate  of  $2,693,000  appropriated  for  the 
service  of  the  Pacific  mails,  and  the  local  service 
of  those  States  and  Territories.  They  contain 
about  six  hundred  and  fifty  thousand  people ; 
and  if  the  postal  expenditures  for  the  rest  of  the 
people  in  this  Union  were  in  exact  proportion  to 
these,  the  postal  service  of  the  country  would 
cost  about  one  hundred  and  twenty-six  million 
dollars  per  annum.” 

There  was  an  appropriation  of  $40,000 
for  Post  Office  blanks.  This  job  was  given 
to  a  political  friend  of  the  Administration, 
who  made  a  clean  profit  of  $30,000;  and 
this  fund  was  used,  with  the  knowledge 
and  advice  of  the  President,  to  keep  alive 
two  of  the  Administration  newspapers  of 
the  country.  The  conduct  of  the  Presi¬ 
dent  was  so  manifestly  wrong  in  this 
affair,  that  his  political  friends  denounced 
him  on  the  floor  of  Congress.  Mr.  Pryor, 
a  Democrat  from  Virginia,  in  speaking  of 
the  transaction,  said  : 

“Look  at  the  disclosures  which  have  been 
brought  before  the  House  at  this  very  session  1 
I  know  that  some  gentlemen  upon  this  side  of 
the  Chamber  are  disposed  or  indicate  a  disposi¬ 
tion  to  throw  the  vail  of  concealment  over  reve¬ 
lations  of  executive  abuse.  I  have  no  such  incli¬ 
nation,  sir.  They  are  enormous ;  they  are  crying 
grievances ;  grievances,  I  assure  gentlemen,  which 
smell  very  badly  in  the  nostrils  of  the  people. 

Take,  for  example,  the  printing  of  the  Post 
Office  blanks,  by  which,  after  the  work  is  done, 
the  surplus  of  appropriation  is  distributed  among 
the  stipendiaries  of  executive  patronage.  Gen¬ 
tlemen  say,  to  be  sure,  that  the  excess  is  only 
distributed  among  the  friends  of  the  Adminis¬ 
tration.  Very  well ;  if  it  was  to  be  expended  at 
all,  it  was  right  to  distribute  it  among  the  friends 
of  the  Administration.  But  why  did  not  the 
President  inform  Congress  that  the  law  appro¬ 
priated  an  excessive  amount  of  money  for  this 
specific  service,  and  suggest  a  large  deduction 
from  an  exorbitant  appropriation?  Instead  of 
recommending  such  a  reduction,  instead  of  in¬ 
dicating  to  the  Representatives  of  the  people 
that  here  was  an  instance  in  which  they  might 
save  a  considerable  sum  to  an  exhausted  Treas¬ 
ury,  that  surplus  expenditure  was  distributed 
among  the  partisans  of  the  Administration. 


4 


Now,  sir,  for  one,  I  denounce  it.  I  am  not  re¬ 
sponsible  for  it.  I  invoke  the  judgment  of  the 
people  against  it.” 

Now  sir,  I  will  turn  my  attention  to 
other  cases  of  pecuniary  corruption.  Take 
the  case  of  Fort  Snelling,  which  was  this: 
The  Fort  and  appurtenances  cost  the 
Government  about  $50,000.  Attached  to 
it  as  a  military  reservation  was  a  tract  of 
8,000  acres  of  beautiful  land,  at  the  junc¬ 
tion  of  the  Mississippi  with  its  most  im¬ 
portant  tributary  north  of  the  Illinois  river, 
a  point  certain  to  be  soon  the  site  of  a 
large  city.  These  8,000  acres  were  worth 
hundreds  of  thousands  of  dollars,  and  if 
duly  advertised  and  pul  up  at  auction  in 
lots,  would  have  probably  brought  $100 
per  acre.  This  immense  property,  which 
was  rapidly  advancing  in  value,  was  pri¬ 
vately  sold  by  the  Secretary  of  War  to  a 
single  favored  purchaser,  for  $90,000,  or 
$11  an  acre.  The  majority  of  the  Con¬ 
gressional  committee  appointed  to  in¬ 
vestigate  the  matter  reported  resolves 
strongly  condemning  the  whole  transac¬ 
tion;  and,  though  the  Democratic  House 
of  Representatives  refused  to  pass  the 
resolves  thus  reported,  it  accepted  the 
substitute,  which  declared  that  the  manage¬ 
ment  of  the  sale,  by  the  agents  authorized 
by  the  Secretary  of  the  War  to  conduct 
the  same,  was  injudicious,  improper,  and 
resulted,  by  reason  of  its  want  of  publicity, 
in  the  exclusion  of  that  competition  among 
persons  desiring  to  purchase,  which,  under 
the  circumstances,  should  have  been  per¬ 
mitted. 

In  1857,  the  Government  wanted  a  site 
for  a  fort  near  New  York  city.  A  piece 
of  land  known  as  Willet’s  Point  is  situ¬ 
ated  on  Long  Island,  on  the  East  River, 
and  was  marsh  land,  subject  to  fever  and 
ague.  It  had  been  for  several  years  in 
the  market  without  finding  a  purchaser, 
though  offered  for  less  than  $50,000.  In 
July,  1856,  it  was  offered  for  $45,000  to 
a  wealthy  merchant  of  Williamsburgh, 
who  refused  to  take  it  at  that  price.  At 
a  still  later  period,  it  was  offered  to  the 
Government  for  $100,000,  and  of  this  offer 
the  War.  Department  was  duly  informed. 
On  the  13th  of  April,  1857,  the  Secretary 
of  War  addressed  to  Augustus  Schell, 
collector  of  the  port  of  New  York,  a  letter 
informing  him  that  the  Government  de¬ 
sired  to  purchase  Willet’s  Point,  and  ask¬ 
ing  him  to  ascertain  its  value.  Mr.  Schell 


took  into  his  confidence  in  this  matter 
several  other  prominent  Democratic  poli¬ 
ticians,  his  intimate  associates,  among 
them  his  brother  Richard  Schell,  Prosper 
M.  Wetmore,  and  Isaac  V.  Fowler,  the 
postmaster  whose  defalcation  has  just 
come  to  light.  The  result  was,  that  on  the 
24th  day  of  April,  1857,  Mr.  Schell  and 
Mr.  Fowler,  both  being  office-holders 
under  Mr.  Buchanan,  and  old  residents 
of  New  York,  addressed  a  joint  letter  to 
the  Secretary  of  War,  in  which  they  in¬ 
formed  him  that  this  property,  which 
shortly  before  had  been  offered  to  the 
Government  for  $100,000,  was  worth 
$200,000  and  recommended  its  purchase. 
It  was  accordingly  bought  by  the  Govern¬ 
ment  and  paid  for  at  that  price.  By  this 
swindle  the  Government  was  plundered  of 
$150,000!  The  House  of  Representatives 
having  appointed  a  committee  to  investi¬ 
gate  this  affair,  the  chairman  of  the  com¬ 
mittee,  after  investigation,  declared  that 
the  property  was  not  worth  $50,000,  and 
that  there  was  a  fraudulent  combination  to 
extort  an  unfair,  exorbitant  and  most  un¬ 
just  price  from  the  Government  in  the 
sale  of  this  property,  and  that  Augustus 
Schell,  by  the  unwarranted  giving  of  his 
certificate,  contributed  to  and  enabled  the 
success  of  the  combination  in  the  matter. 
Notwithstanding  these  facts,  the  Govern¬ 
ment  continued  to  retain  Mr.  Schell  as 
collector  and  Mr.  Fowler  as  postmaster 
until  the  latter  turned  out  a  defaulter  to 
the  tune  of  $155,000  both  being  recog¬ 
nised  leaders  of*the  Democratic  party, 
and  intrusted  with  the  collection  of  mill¬ 
ions  of  the  people’s  money. 

Another  source  of  wasteful  expenditure 
grows  out  of  the  enormous  profits  of  the 
public  printing.  Committees  appointed  by 
the  Senate  and  the  House  have  made  a 
thorough  investigation  of  this  matter,  and 
from  their  reports  we  are  told  that  the 
total  amount  paid  for  printing  and  bind¬ 
ing  during  the  past  six  years  was  nearly 
four  million  dollars,  and  that  the  work 
might  have  been  done  for  fifty  per  cent, 
less  than  the  price  paid  by  the  Govern¬ 
ment  for  doing  it.  In  other  words,  that  if 
economy  had  prevailed,  the  sum  of  about 
two  million  dollars  might  have  been  saved 
to  the  Government.  It  appears  that  Mr. 
Cornelius  Wendell  executed  most  of  the 
printing  during  the  period  referred  to,  un¬ 
der  some  arrangement  with  the  printers 


5 


elected  by  the  Senate  and  House,  by 
which  he  was  to  pay  them  a  certain  sum 
for  their  share  of  the  profits.  It  was  fur¬ 
ther  arranged  that  Mr.  Wendell  was  to 
pay  other  sums  towards  the  support  of 
Administration  newspapers,  and  that,  in 
pursuance  of  such  arrangement,  he  did 
pay  large  sums  for  that  purpose,  with  the 
knowledge  and  assent  of  the  Administra¬ 
tion.  The  committee  say  that,  from  all  the 
testimony,  it  appears  that  Mr.  Wendell, 
in  the  contributions  which  he  made  from 
the  proceeds  of  the  printing  for  party  pur¬ 
poses,  acted  as  the  agent  and  friend  with 
the  knowledge  and  concurrence  of  the 
Administration.  Mr.  Wendell  himself 
says  that  he  contributed  directly  or  indi¬ 
rectly  one  hundred  thousand  dollars ,  to  be 
expended  in  elections  to  influence  their 
results,  in  addition  to  the  bonus  paid  for 
the  contracts.  He  sent  money  into  cer¬ 
tain  doubtful  Congressional  districts  in 
Pennsylvania,  New  Jersey,  and  New 
York,  in  1858,  to  influence  the  election 
of  members  of  Congress.  A  Mr.  Megar- 
gee,  of  Philadelphia,  testified  before  the 
investigating  committee  of  the  Senate  as 
follows : 

“  Question.  Did  you  receive  any  money  for  po¬ 
litical  purposes  in  Pennsylvania  or  New  Jersey 
from  Mr.  Wendell? 

“  Witness.  Am  I  really  compelled  to  answer 
such  questions  ? 

“  Mr.  Kennedy.  I  think  it  is  within  the  scope 
of  the  inquiry. 

“  The  committee  thought  the  question  was  a 
proper  one,  and  that  it  should  be  answered. 

11  Answer.  I  did,  sir,  receive  money  at  various 
times  for  political  purposes. 

“  Question.  Were  those  moneys  expended  for 
the  promotion  of  the  interests  of  the  Democratic 
party? 

“  Answer.  Not  all  of  them.  Some  of  it  was 
used  for  a  third  party,  which  was  organized  to 
divert  votes  from  what  was  known  as  ‘  the  Peo¬ 
ple’s  party  ’  with  us.  The  ‘  People’s  party  ’  was 
in  opposition  to  the  Democratic  party.  We  did 
not  know  there  the  party  organized  as  ‘  the  Re¬ 
publican  party.’  The  opposition  to  the  Demo¬ 
cratic  party  was  called  ‘the  People’s  party;’  and 
to  divert  votes  from  that  party,  the  third  party 
was  organized.  The  object  was  to  divide  the 
‘  People’s  party.’ 

“  Question.  Was  such  a  third  party  organized? 

“  Answer.  Yes,  sir. 

“  Question.  Did  you  believe  that  was  necessary 
to  the  success  of  the  Democratic  party  ? 

“  Answer.  We  certainly  did,  or  we  should  not 
have  given  them  the  money. 

“  Question.  What  was  that  third  party  called? 

“  Answer.  The  straight  American  party ;  the 
‘  straight-outs.’ 


“  Question.  You  speak  both  of  Pennsylvania 
and  New  Jersey? 

“  Answer.  Yes,  sir. 

“  Question.  And  of  those  State  only  ? 

11  Answer.  Yes,  sir  ;  of  those  only.” 

Mr.  Anthony,  one  of  the  committee, 
stated  in  the  Senate  that  the  aggregate 
cost  of  the  public  printing  is  about  double 
the  fair  price  at  which  it  might  be  per¬ 
formed,  and  ought  to  be  performed ;  and 
that  some  portion  of  the  Executive  print¬ 
ing  has  cost  five  or  six  times  the  usual 
prices  that  would  be  paid  by  individuals 
for  the  same  work.  That  the  whole  sys¬ 
tem  of  the  public  printing  is  extravagant 
in  itself,  and  that  much  of  it  has  been  cor¬ 
rupt,  or  inexcusably  careless  in  its  admin¬ 
istration,  and  that  it  demands  immediate 
reform. 

From  the  report  of  the  Secretary  of  the 
Treasury,  it  appears  that  there  has  been 
disbursed  from  1807  to  1859,  on  the  various 
public  buildings  purchased  or  constructed, 
under  the  Treasury  Department,  the  sum 
of  $20,126,997.09.  Of  this  amount,  over 
thirteen  millions  has  been  expended  with¬ 
in  the  past  six  years.  The  expenses  of 
the  Navy  Department  for  the  year  ending 
June  30,  1859,  was  over  fourteen  million 
dollars,  which  is  a  large  increase.  In 
1848,  the  expenses  of  this  Department, 
although  we  had  just  emerged  from  the 
war  with  Mexico,  amounted  to  only  about 
nine  million.  I  find  by  an  examination, 
of  the  Navy  Register  for  the  year  1860, 
that  we  have  in  the  navy  at  this  time — in 
a  time  of  peace  —  ninety-nine  captains, 
who  are  paid  an  average  salary  of  $4,000 
each;  one  hundred  and  thirty  command¬ 
ers,  at  a  salary  of  about  $2,000;  three  hun¬ 
dred  sixty  lieutenants,  at  a  salary  of  about 
$1,800;  one  hundred  and  forty-eight  sur¬ 
geons,  at  a  salary  of  about  $2,200 ;  sixty- 
five  pursers,  at  a  salary  of  about  $2,000  ; 
besides  an  army  of  midshipmen,  engi¬ 
neers,  mates,  navy  agents,  naval  store¬ 
keepers,  naval  constructors,  clerks,  &c. 
A  considerable  number  of  these  officers 
are  seldom  on  duty,  and  we  find  written 
opposite  their  nappes,  “  waiting  orders,” 
“  on  leave,”  “  on  furlough,”  while  their 
pay  goes  on  all  the  same.  Now,  I  am  not 
saying  that  this  is  all  unnecessary,  but  I 
do  insist  that  abuses  have  crept  into  our 
navy  which  should  be  corrected,  and  that 
in  a  time  of  peace  it  is  not  necessary  that 
the  sum  of  fourteen  millions  of  dollars 


0 


should  be  annually  expended  in  this  De¬ 
partment  alone.  We  have  nearly  ninety 
war  vessels  of  different  kinds,  carrying 
from  one  to  one  hundred  and  twenty 
guns ;  eight  navy  yards,  when  there  should 
be  but  two;  and  a  large  number  of  shore 
stations.  The  expenses  incurred  in  these 
various  ways  can  be  greatly  curtailed, 
and  it  is  the  duty  of  the  Government  to 
institute  a  rigid  scrutiny  into  this  branch 
of  our  public  service.  One  source  of  the 
large  increase  in  the  expenses  of  the  Navy 
Department  is  shown  by  the  able  report 
of  Messrs.  Sherman  and  Ritchie,  from  the 
special  committee  appointed  at  the  last 
session  of  the  Thirty-fifth  Congress,  to  in¬ 
vestigate  certain  abuses  in  the  manage¬ 
ment  of  this  Department.  And,  a  few 
days  since,  the  Committee  on  Expendi¬ 
tures  in  the  Navy  Department  made  an 
able  report  to  this  House  upon  the  same 
subject,  concluding  with  the  following 
resolutions,  which  were  passed  by  a  vote 
of  two  to  one  : 

“  Resolved ,  That  the  Secretary  of  the  Navy  has, 
with  the  sanction  of  the  President,  abused  his 
discretionary  power  in  the  selection  of  a  coal 
agent,  and  in  the  purchase  of  fuel  for  the  Gov¬ 
ernment. 

“  Resolved ,  That  the  contract  made  by  the  Sec¬ 
retary  of  the  Navy,  under  date  of  September  23, 
1858,  with  William  C.  N.  Swift,  for  the  delivery 
of  live-oak  timber,  was  made  in  violation  of  law, 
and  in  a  manner  unusual,  improper,  and  inju¬ 
rious  to  the  public  service. 

“  Resolved ,  That  the  distribution,  by  the  Sec¬ 
retary  of  the  Navy,  of  the  patronage  in  the  navy 
yards  among  members  of  Congress,  was  destruc¬ 
tive  of  discipline,  corrupting  in  its  influence,  and 
highly  injurious  to  the  public  service. 

“  Resolved,  That  the  President  and  Secretary 
of  the  Navy,  by  receiving  and  considering  the 
party  relations  of  bidders  for  contracts  with  the 
United  States,  and  the  effect  of  awarding  con¬ 
tracts,  upon  pending  elections,  have  set  an  ex¬ 
ample  dangerous  to  the  public  safety,  and  de¬ 
serving  the  reproof  of  this  House. 

“  Resolved ,  That  the  appointment,  by  the  Sec¬ 
retary  of  the  Navy,  of  Daniel  B.  Martin,  chief  en¬ 
gineer,  as  a  member  of  a  board  of  engineers  to 
report  upon  proposals  for  constructing  machinery 
for  the  United  States,  the  said  Martin,  at  the 
time,  being  pecuniarily  interested  in  some  of 
the  said  proposals,  is  hereby  censured  by  this 
House.” 

It  was  shown  before.the  committee  that 
a  political  friend  of  the  President,  in  Phil¬ 
adelphia,  addressed  h‘im  the  following  let¬ 
ter,  just  before  the  election  in  Pennsylva¬ 
nia,  in  1858 : 

“Philadelphia,  Sept.  13,  1858. 

“Drar  Sir:  I  venture  to  suggest  to  you  the 
importance  of  awarding  the  contracts  for  the 


machinery  of  the  sloop  now  building  at  the  navy 
yard  at  this  time,  and  if  it  can  be  done  without 
prejudice  to  the  public  service,  to  Merrick  k 
Sons.  Theirs  is  the  only  establishment  in  the 
1st  district  which  employs  a  large  number  of 
mechanics — at  this  time  390;  when  in  full  work, 
450. 

“  The  managing  partners  (Mr.  M.,  sen.,  being 
absent  in  bad  health)  are  full  of  energy,  strain¬ 
ing  every  nerve  to  keep  their  force  during  this 
depression,  and,  in  so  far  as  I  know,  the  only 
Old  Whigs  of  any  influence  in  that  district  who 
are  in  favor  of  the  re-election  of  Colonel  Flor¬ 
ence. 

“  I  know,  from  former  experience,  the  value  of 
that  influence,  and  feel  persuaded  that  it  is  the 
interest  of  the  Democratic  party  to  increase  it. 

“  The  1st  district  will,  I  hope,  be  carried  in 
any  event ;  but  with  that  shop  at  work,  full¬ 
handed,  two  weeks  prior  to  the  election,  the  re¬ 
sult  would,  I  think,  be  placed  beyond  all  doubt. 

“  With  much  respect, 

“W.  C.  Patterson. 

“  The  President .” 

This  letter  was  promptly  sent  by  Mr. 
Buchanan  to  the  Secretary  of  the  Navy, 
with  a  note  calling  his  attention  to  it,  and 
the  result  was,  Merrick  &  Sons  obtained 
the  contract,  though  the  Novelty  Works 
in  New  York  city  offered  to  do  the  work 
for  a  much  less  sum  than  was  paid  to  the 
contractors!  Can  it  be  wondered  at,  in 
view  of  such  examples,  that  the  Govern¬ 
ment  is  defrauded  and  robbed  by  its  offi¬ 
cers  ?  Sir,  it  is  easy  enough  to  account 
for  the  increased  expenditure  in  the  Navy 
Department,  by  the  scandalous  partition 
of  patronage  in  the  Brooklyn  navy  yard 
among  New  York  members  of  Congress, 
by  the  live-oak  contracts,  by  the  contract 
for  machinery,  by  the  purchase  of  coal  at 
exorbitant  rates,  and  the  commissions  al¬ 
lowed  political  favorites. 

An  examination  has  satisfied  me  that 
millions  of  dollars  are  squandered  an¬ 
nually  by  retaining  in  the  public  service 
custom-house  officers,  consuls,  and  other 
agents,  whose  services  are  not  needed. 
In  1857,  nearly  four  million  dollars  were 
expended  in  collecting  revenue  from  cus¬ 
toms.  I  find  by  the  official  report  of  the 
Secretary  of  the  Treasury,  in  answer  to  a 
resolution  of  the  Senate,  that  in  1857  the 
whole  amount  of  revenue  collected  at 
Wilmington,  Delaware,  was  $2,004,  and 
that  eight  custom-house  officers  were  em¬ 
ployed  in  the  collection  of  this  sum,  at  a 
cost  to  the  Government  of  $15,848 — 
being  a  loss  to  the  Government  of  $13,344. 
At  Annapolis,  Maryland,  there  was  col¬ 
lected  the  same  year  $374 ;  four  men  were 


7 


employed  by  the  Government  in  collect¬ 
ing  this  sum,  at  a  cost  to  the  Government 
of  $983.  At  Oranoke,  North  Carolina, 
there  was  collected  the  same  year  $82; 
seven  men  were  employed  in  its  collec¬ 
tion,  and  it  cost  the  Government  $2,301. 
At  Buffalo,  New  York,  there  was  collected 
the  same  year  $10,140.53;  ten  men  were 
employed  in  its  collection,  and  it  cost  the 
Government  the  sum  of  $16,896  51.  At 
Monterey,  California,  there  was  collected 
the  same  year  $42,  and  it  required  three 
men  to  collect  it,  at  an  expense  to  the 
Government  of  $7,050.  At  Port  Oxford, 
Oregon,  there  was  collected  the  sum  of 
$5.85  ;  two  men  were  employed  in  its  col¬ 
lection,  at  an  expense  of  $2,702.  I  might 
multiply  instances  of  this  kind,  but  these 
will  suffice  to  show  the  loose  manner  in 
which  this  x\dministration  manages  the 
affairs  of  the  people. 

In  the  report  of  the  Secretary  of  the 
Treasury,  I  also  find  a  statement  showing 
the  amount  of  salaries  paid  to,  and  fees 
received  from,  the  consular  officers  of  the 
United  States,  for  the  year  ending  De¬ 
cember  30,  1858.  At  Simoda,  the  con¬ 
sul  collected  $1,56  in  fees,  and  the  salary 
paid  him  by  our  Government  was  $5,000. 
At  Tangier,  no  fees  were  collected  by  the 
consul,  but  the  sum  of  $3,000  was  paid 
him  by  our  Government.  At  Tunis,  the 
consul  collected  $1,  and  was  paid  by  our 
Government  $3,000.  At  Candia,  $1,000 
was  paid  our  consul,  and  no  fees  col¬ 
lected.  At  Gaboon,  the  same.  At  Stet¬ 
tin,  $1,000  was  paid,  and  only  $2  fees 
collected.  The  total  amount  paid  to  one 
hundred  and  thirty-three  consular  officers 
was  $255,540.85.  Total  amount  of  fees 
returned  by  them,  $98,383.41.  Amount 
paid  over  and  above  fees,  $157,157.44. 

Look,  sir,  at  the  immense  patronage  of 
the  Post  Office  Department,  and  the  army 
of  postmasters,  route  agents,  messengers, 
&.C.,  employed  in  this  branch  of  the  pub¬ 
lic  service.  I  annex  a  statement  showing 
the  vast  palronage  connected  with  this 
Department  of  the  Government : 

27,977  postmasters,  costing  -  -  -  $2,355,000 
440  route  agent3,  costing  -  -  -  334,000 

28  express  route  agents,  costing  28,000 

23  local  agonts,  costing  -  -  -  29,989 

1,404  mail  messengers,  costing  -  -  184,634 

31  special  agents,  costing  -  -  73,000 

Clerks,  costing  -------  918,000 

Salaries  in  Post  Office  Department 

proper .  170,000 


If  time  would  permit,  I  could  go 
through  with  numerous  other  expendi¬ 
tures  of  the  Government,  and  show  that 
there  was  great  room  for  reduction.  That 
these  other  expenditures  might  be  greatly 
reduced,  I  have  not  the  slightest  doubt. 
The  three  great  items  upon  which  the 
principal  reductions  can  be  made  are  the 
army,  the  navy,  and  the  Post  Office  De¬ 
partment.  The  latter  should  be  made 
self-sustaining.  In  reference  to  the  mil¬ 
itary  and  naval  defences  of  a  country,  I 
think  the  true  policy  is  not  to  keep  up 
large  armies  and  navies  in  time  of  peace, 
because  the  public  resources  are  wasted 
before  the  war  comes;  but  to  have  as 
small  armies  and  navies  as  possible,  and 
thus  preserve  unimpaired  the  resources  of 
the  country  when  the  war  arrives. 

I  am  aware,  sir,  of  the  difficulties  which 
surround  this  subject,  and  that,  with  some 
people,  the  right  place  to  commence  a  re¬ 
form  can  never  be  found.  If  we  talk  about 
a  reform  in  our  army  and  navy,  we  are  told 
that  we  desire  to  cripple  the  Administra¬ 
tion.  If  we  were  to  cut  off  some  of  our 
useless  foreign  missions,  we  should  excite 
the  prejudices  of  those  who  have  relatives 
attached  to  our  foreign  embassies.  If  we 
seek  to  make  the  Post  Office  Department 
self-sustaining,  we  are  told  that  we  are 
interfering  with  the  extension  of  com¬ 
merce,  the  security  of  the  country,  and 
the  development  of  its  resources.  The 
people  must  take  hold  of  this  matter,  and 
demand,  at  the  hands  of  their  public  ser¬ 
vants,  retrenchment  and  reform. 

But  sir,  I  have  no  hopes  of  a  real  econ¬ 
omy  under  a  Democratic  Administration. 
That  party  has  been  in  power  for  nearly 
eight  years,  during  which  time  the  ex¬ 
penses  of  Government  have  fearfully  in¬ 
creased,  and  the  fruits  of  its  policy  are 
now  felt  in  a  prostrate  industry,  a  paraly¬ 
zed  commerce,  a  bankrupt  treasury,  and  a 
large  and  steadily  increasing  national  debt. 
By  unduly  enlarging  the  patronage  of  the 
General  Government,  the  party  in  power 
has  corrupted  public  morals,  debased  pub¬ 
lic  sentiment,  sapped  the  foundations  of 
virtue,  destroyed  the  independence  of  the 
citizen,  and  disturbed  the  harmony  exist¬ 
ing  between  the  two*sectionsof  the  Union. 
Corruption  has  has  gained  undisputed 
control  in  every  department  of  Govern¬ 
ment,  and  stamped  its  stain  indelibly  upon 
our  nation;  and  shameless  profligacy  has 


8 


given  us  complete  bankruptcy  at  home, 
and  national  dishonor  abroad.  It  is  known 
to  the  country,  that  when  Mr.  Buchanan 
entered  upon  the  discharge  of  the  high 
office  of  President  of  the  United  States, 
there  were  $26,000,000  in  the  Treasury, 
and  that  in  ten  months  it  had  all  disap¬ 
peared,  and  $20,000,000  had  to  be  bor¬ 
rowed.  Eight  months  afterwards  another 
$10,000,000  were  borrowed,  and  five 
months  later  another  $10,000,000  were 
had  in  the  same  way,  making  $66,000,000 
in  all.  I  submit  that  the  honor  and  rep¬ 
utation  of  the  country  demand  a  change 
of  rulers,  not  a  mere  change  from  one 
Democratic  Administration  to  another, 
but  a  thorough  and  radical  change.  It 
has  been  well  said  that  the  experience  of 
all  Governments,  in  all  ages  of  the  world, 
has  conclusively  shown  that  political 
power  cannot  long  be  safely  intrusted  to 
the  same  hands.  The  long  possession  of 
power  has  corrupted,  perverted,  and  de¬ 
stroyed  the  Democratic  party.  Its  leaders, 
its  prominent  men,  have  repeatedly,  with¬ 
in  the  last  few  years,  been  arraigned  and 
convicted,  at  the  bar  of  public  opinion,  of 
acts  of  political  profligacy  and  corruption, 
which  demonstrates  their  unfitness  for  the 
trust  reposed  upon  them. 

Mr.  Chairman,  the  party  with  which  I 
am  proud  to  act  has  selected  as  its  candi¬ 
date  for  the  Presidency  a  man  who  is 
“  honest,  capable,  and  faithful  to  the  Con¬ 
stitution. ”  We  have  placed  our  banner 
in  the  hands  of  Abraham  Lincoln — a  man 
brought  up  among  the  prairies  of  the 
West — a  man  who  at  any  time,  when  ne¬ 
cessary,  can  throw  oft'  his  coat  and  go  to 
work — a  man  who  will  administer  the  af¬ 
fairs  of  Government  for  the  benefit  of  the 
people,  and  not  of  a  political  party. 

The  people  of  the  United  States  have 
learned,  by  bitter  experience,  that  this 
eternal  cry  of  Democracy,  Democracy, 
and  the  false  professions  of  devotion  to 
the  interests  of  the  country,  are  like  the 
songs  of  the  syren,  which  enchanted  but 
to  destroy.  And,  sir,  they  have  aroused 
like  a  giant  from  his  slumber,  to  burst 
asunder  the  shackles  of  party,  and  redeem 
the  free  institutions  of  their  country  from 
the  hands  of  the  “  spoilsmen.”  They  can 
no  longer  be  deceived  by  a  false  issue. 
The  evils  which  misrule  has  brought  upon 
the  country  are  now  so  severely  felt,  that 


dernagoguism  can  no  longer  conceal  from 
the  people  the  true  cause  of  those  evils. 
They  will  remember  that  the  party  in 
power  won  their  confidence  by  loudly 
promising  retrenchment  and  reform,  and 
a  faithful  administration  of  the  Govern¬ 
ment,  for  the  happiness  and  welfare  of 
the  people.  They  see  that  these  promises 
have  been  shamefully  broken  ;  that  the 
expenditures  of  the  Government  have  been 
increased  beyond  all  former  precedent; 
and  that  vast  sums-of  the  public  treasure 
have  been  wasted  in  the  most  wanton  and 
profligate  manner ;  and,  instead  of  a  cor¬ 
rection  of  abuses  in  the  administration  of 
the  Government,  they  see  corruption 
walking  abroad  in  the  land,  with  bribes 
in  her  hand,  debasing  the  public  morals 
and  lowering  the  standard  of  public  virtue. 

Sir,  I  have  hopes  of  the  future.  I  be¬ 
lieve  the  people  are  preparing  to  pro¬ 
nounce,  in  tones  of  thunder,  their  disap¬ 
probation  of  an  Administration  whose 
policy  is  at  war  with  their  interest,  and 
of  a  political  party  whose  principles  and 
practices  are  dangerous  to  constitutional 
libei ty .  When  that  result  is  brought  about,., 
I  hope  to  see  the  Government  once  more 
faithfully  and  honestly  administered,  for„ 
the  happiness  and  welfare  of  the  people. 

I  hope  to  see  the  heavy  cloud  of  adversity 
which  now  darkens  our  horizon  rolled 
away,  and  the  sun  of  prosperity  again 
shine  forth,  that  the  people,  under  the 
genial  influence  of  it3  beams,  may  ad¬ 
vance  to  prosperity  and  happiness,  and 
our  country  resume  her  onward  march  to 
increased  power  and  greatness. 

Sir,  I  regret  being  compelled  to  expose 
to  the  gaze  of  my  fellow-citizens  the  cor¬ 
ruptions  of  their  Government.  I  regret 
that  this  corruption  exists.  But,  sir,  I  would 
come  short  of  the  duty  I  owe  to  a  gener¬ 
ous  and  confiding  constituency,  whom  I 
represent  upon  thts  floor,  if  I  did  not  rise 
here  in  my  place,  and  show  up  the  waste¬ 
ful  expenditure  of  the  public  money,  and 
denounce  the  extravagance  and  corrup¬ 
tion  of  those  in  power.  And,  sir,  while 
I  am  permitted  to  occupy  a  seat  in  this 
Chamber,  I  intend  on  all  suitable  oc¬ 
casions  to  raise  my  voice  against  the  cor¬ 
ruptions  of  Government,  whether  that 
Government  be  in  the  hands  of  my  own 
party,  or  in  those  of  the  party  opposed 
to  me. 


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